Business, 11.06.2021 04:20 mikeydog3781

For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in notes, or (c) have no disclosure.
1. Cruz Company guarantees the $100,000 debt of a supplier. It is not probable that the supplier will
default on the debt.
2. A disgruntled employee is suing Cruz Company. Legal advisers believe that the company will likely
need to pay damages, but the amount cannot be reasonably estimated.

Answers: 2

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Answer from: hannahkharel2

Cruz Company

Indicating whether to (a) record a liability, (b) disclose in notes, or (c) have no disclosure.

Transaction Remark

1. Guarantee of supplier's debt (c) have no disclosure

2. Damages for disgruntled employee (b) disclose in notes

Explanation:

When it is not probable that the supplier whose debt is guaranteed by Cruz will default on the debt, there is no need to make a disclosure since probable liability is not accruing to Cruz. But with the legal case of a disgruntled employee, Cruz should disclose the information in a note. It can only be recorded as a liability when the amount of the damages can be reasonably estimated.

Answer from: Quest

Entrepreneur is a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

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For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclo...